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Developing international corridors across Africa, Asia and the Middle-East, lessons learnt from IDB experience Dr. Walid Abdelwahab , Director Infrastructure Department. Outline.

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  1. Developing international corridors across Africa, Asia and the Middle-East, lessons learnt from IDB experience Dr. WalidAbdelwahab, Director Infrastructure Department

  2. Outline Snapshot of IDB GroupTransport sector portfolioWhy finance international corridors?7 best practices in corridor development from IDB experience

  3. Snapshot of IDB Group - Overview 1975 1981 1999 1994 2008 US$ 84.9 billion total approvals since inception Transport is a priority for IDB Sector distribution of IDB project financing

  4. IDBG Initiatives for developing trade and transport across regions 1) Financing of critical transport infrastructure Transport Scorecard Total Financing : ID 4.42 Bn Total Operations : 393 Total 1429-34H: ID 2.27 Bn Total Operations : 57 51% of total in last 5 years

  5. Snapshot of IDB Group – Strategic focus on regional integration The strategic thrust of the IDB Vision 2020 is to support and promote greater economic cooperation and integration at regional level. Mid-term business strategy

  6. Transport sector portfolio – Global initiatives

  7. Our focus on international corridors Prioritization criteria for international transport corridors • Involvement of OIC Member States • Intra Regional Trade Potential • InterRegional Trade Potential • Presence of Missing Links • Importance of Non-Physical Barriers • Distance from Ports • Connections with Capital Cities • Connection Between Locations of Economic Importance • Transport costs along the corridor Source: A study of international transport corridors in OIC member countries, IDB, 2011 Some Ongoing Projects across IDB constituency SEETO Corridor CAREC Corridors Silk Road Machreq Corridors Trans-Saharan Highway

  8. 7 best practices in corridor development from IDB experience (i) • Adopt a programmatic approach (ii) • Build a strong case before resource mobilization (iii) • Set up an independent governance body (iv) • Consider alternative routes (v) • Align multi-year country development plans (vi) • Coordinate donor support through roundtables and joint preparation (vii) • Address physical and non-physical barriers to trade 7

  9. 7 best practices in corridor development from IDB experience (i) • Adopt a programmatic approach • Programmatic approach helps ensure: • Strategic consistency • Sustainability of the initiative • Long term donor support • Staged implementation • Adaptation to country context and national priorities • Ex) The CAREC corridors

  10. 7 best practices in corridor development from IDB experience (ii) • Build a strong case before resource mobilization • Raise the profile of the program through communication (events) and demonstration projects • Prepare comprehensive Feasibility study • Develop Bankable proposals (investment-ready) • Explore PPP opportunities • Ex) The Silk Road, linking Europe to Asia through trade

  11. 7 best practices in corridor development from IDB experience (iii) • Set up an independent governance body The Trans-Saharan Liaison Committee International corridor developments are multi-country multi-stakeholders initiatives, need to institutionalize through set-up of sound governance arrangements such as Steering Committee or Corridor Observatories • Composed of Director of Roads from the 6 participating countries (Algeria, Chad, Mali, Niger, Nigeria and Tunisia) • Set-up in 1966 • In charge of studying and implementing the program • Bi-Annual coordination Meetings • Coordination of donor support and roundtables • Execute country programs while ensuring consistency across countries • Platform for knowledge exchange and capacity building

  12. 7 best practices in corridor development from IDB experience (iv) • Consider alternative routes For each corridor need to define the alternative routes composing the corridor and develop economic feasibility and preliminary studies at network and route level. Ex) The South-East Europe Transport Observatory (SEETO) Comprehensive Network Road

  13. 7 best practices in corridor development from IDB experience (v) • Align multi-year country development plans A corridor is only as strong as its weakest link ! Need to ensure continuity of cross-border investments to address missing links in sequence. Ex) Trans-African Highways

  14. 7 best practices in corridor development from IDB experience (vi) • Coordinate donor support through roundtables and joint preparation The coordination of donors is critical to ensure financial closure of major corridor projects. Donor roundtables or joint preparation missions are an efficient way to attract maximum donor support. Ex) The Coordination Group of Arab donors, coordinating responses in the transport sector for more than three decades Ex2) Machreq corridors and CAREC corridors co-financed with other MDBs

  15. 7 best practices in corridor development from IDB experience (vii) • Address physical and non-physical barriers to trade Border waiting times account for up to 48% of journey time across international corridors in the Arab region! (Source: AULT/IRU/IDB Project) If non-physical barriers to trade are not tackled properly the impact of cross-border transport corridor projects is very limited Ex) Barriers to trade in West Africa Time –Distance (Blue) and Cost – Distance (Green) graphs for selected Arab corridors (Qatar-KSA-Egypt, Jordan-KSA-Kuwait) Source: AULT/IRU/IDB project

  16. شكرالكمThank youWalidAbdelwahabwabdelwahab@isdb.org

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